Daimler Truck Holding AG and AB Volvo have announced a preliminary agreement to create a joint venture for a software-defined vehicle platform, aimed at accelerating digital transformation in the commercial vehicle sector.
This platform, alongside a new truck operating system, aims to establish the foundation for future software-defined commercial vehicles. The proposed joint venture, to be split 50/50 and headquartered in Gothenburg, Sweden, will leverage existing assets and resources from both companies.
The current agreement is non-binding, with both companies aiming to finalize terms by the end of this year. The transaction is expected to be concluded by the first quarter of fiscal 2025, pending necessary regulatory approvals.
The joint venture will focus on developing standardized hardware and software, enabling both Daimler Truck and Volvo Group—and potentially other partners—to offer unique digital features in their vehicles.
Operating as an independent entity, the venture will allow Daimler Truck and Volvo Group to remain competitive in other aspects of their business.
Martin Daum, CEO of Daimler Truck, commented, "Developing a common software-defined vehicle platform with Volvo Group will transform our vehicles into programmable devices. This collaboration allows us to rapidly and efficiently create distinctive digital features for our truck and bus customers globally. Together, we aim to set a new industry standard with a benchmark truck operating system."